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Segment Information
 9 Months Ended
Nov. 01, 2014
Segment Reporting [Abstract]  
Segment Information
3. Segment Information
 
The Company has determined that its reportable segments are those that are based on its method of internal reporting. As of November 1, 2014, the Company has two reportable segments, Athletic Stores and Direct-to-Customers. The Company evaluates performance based on several factors, of which the primary financial measure is division profit. Division profit reflects income before income taxes, corporate expense, non-operating income, and net interest expense. Sales and division profit for the Company’s reportable segments for the thirteen weeks and thirty-nine weeks ended November 1, 2014 and November 2, 2013 are presented below.
 
 
 
Thirteen weeks ended
 
Thirty-nine weeks ended
 
Sales
 
November 1,
 
November 2,
 
November 1,
 
November 2,
 
(in millions)
 
2014
 
2013
 
2014
 
2013
 
Athletic Stores
 
$
1,521
 
$
1,444
 
$
4,646
 
$
4,228
 
Direct-to-Customers
 
 
210
 
 
178
 
 
594
 
 
486
 
Total sales
 
$
1,731
 
$
1,622
 
$
5,240
 
$
4,714
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Results
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Athletic Stores (1)
 
$
181
 
$
159
 
$
577
 
$
486
 
Direct-to-Customers (2)
 
 
25
 
 
20
 
 
67
 
 
53
 
Division profit
 
 
206
 
 
179
 
 
644
 
 
539
 
Less: Corporate expense, net
 
 
19
 
 
17
 
 
59
 
 
56
 
Operating profit
 
 
187
 
 
162
 
 
585
 
 
483
 
Other income (3)
 
 
1
 
 
—
 
 
3
 
 
3
 
Interest expense, net
 
 
1
 
 
2
 
 
3
 
 
4
 
Income before income taxes
 
$
187
 
$
160
 
$
585
 
$
482
 
 
(1)
Included in the Athletic Stores segment for the thirty-nine weeks ended November 1, 2014 is a $1 million tradename impairment charge related to the Company’s stores in the Republic of Ireland. Included in the Athletic Stores segment for the thirty-nine weeks ended November 2, 2013 is a $2 million charge recorded in connection with the closure of all CCS stores.
(2)
Included in the Direct-to-Customers segment for the thirty-nine weeks ended November 1, 2014 is a $2 million impairment charge related to the CCS tradename.
(3)
Other income includes non-operating items, such as lease termination gains, royalty income, and the changes in fair value, premiums paid and realized gains associated with foreign currency option contracts.